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November 6, 2006
California Insurance Commissioner John
Garamendi is recommending a -9.5 percent
decrease in the workers' compensation advisory
pure premium rates for policies incepting on
or after Jan. 1, 2007.
The recommendation is higher than the -6.3
percent recommended by the Workers'
Compensation Insurance Rating Bureau (WCIRB),
and will bring the cumulative total reduction
in the cost of claims within the system to
-59.4 percent, according to the commissioner.
The decreases have resulted from a continuing
drop in the frequency of workers' compensation
claims, a decreasing amount of total permanent
disability payments, and record low combined
loss ratios for the industry, he said.
"It is an achievement of national
significance, as no other state has recorded
such success in reforming a broken workers'
compensation system," Garamendi said.
"However, more improvements must be made,
primarily to ensure that injured workers
receive the care to which they are entitled.
I, and many others, have heard far too many
reports of suffering by injured workers who
don't receive proper compensation, or who
experience unnecessary delays in receiving the
medical care they need.
"Though the system is now more financially
stable, it must be improved to deal
appropriately with seriously injured workers
seeking fair compensation and timely medical
care," he continued. "The medical treatment
guidelines and utilization review system that
we established to reform the system are
necessary, but they must be used to help
injured workers, not to block or delay
reasonable and prompt treatment."
A copy of the decision can be found at the
bottom of the press release at
www.insurance.ca.gov.
Source: CDI
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